After discovering a potential problem in the legislation, the Agricultural Producers Association of Saskatchewan (APAS) has asked the federal government to review the carbon tax's farm fuel exemption.
Their concern is that while the legislation currently doesn’t apply a carbon tax to fuel delivered to farmers’ yards, it will still apply to those who fill up at cardlocks.
APAS President Todd Lewis explained the problem.
"The way the legislation reads," Lewis said. "the fuel has to be delivered to a farm site to be exempt from the carbon tax. Of course, cardlocks aren't on farm sites so any fuel purchased from a cardlock will have the carbon tax added to it. That's problematic for a lot of producers because that's their main source of fuel."
Lewis said it's a problem they would like to see the government fix before the end of the month if possible.
"For producers that do use that (cardlocks) as their source," Lewis said. "That's thousands of liters times four or five cents with the added carbon tax. That'll add up into hundreds of dollars and as the tax escalates over the next couple of years that will be a pretty significant impact."
In regards to the government's response to the request, federal finance minister Bill Morneau recently tweeted on the issue.
Our Government’s policy is to exempt gasoline and diesel used on farms from the federal price on pollution. We are examining the cardlock issue and looking to find a solution. https://t.co/AcrEkanlVV— Bill Morneau (@Bill_Morneau) March 8, 2019
The carbon tax will come into effect on April 1st this year.